A Government Deadlock in Pakistan’s food supply chain has caused flour mills and wheat sellers nationwide to go on an indefinite strike in response to a newly introduced withholding tax. This has stopped milling operations for wheat and may disrupt the availability of flour, especially in big cities such as Lahore.
Industry Response and Concerns
Asim Raza, Chairman of the Pakistan Flour Mills Association (PFMA). Vehemently opposed imposing a withholding tax on essential commodities, including wheat. He said such taxation is unacceptable and that more than 1500 flour mills nationwide have been closed unprecedentedly. This will not only stop the milling process but also endanger smooth supply to those markets that heavily rely upon these facilities for their daily flour needs.
Supply Chain Impact and Consumer Worries
The sudden closure of any mill creates fears about a shortage of its input item followed by difficulty in meeting the demand for the final product, i.e., fear about the wheat crisis leading towards shortage or high flour prices. Disturbances in supplies from Punjab province, where Lahore is situated, make it the most vulnerable region. Punjab produces bulk quantities that are consumed locally and exported due to their relatively low cost compared to other parts. Therefore, any interruption may result in either scarcity or increased prices within a few days after a shutdown. Consumers ranging from households through bakeries to other businesses relying on derivatives like bread must brace themselves during hours remaining active while employees are still striking.
Government vs. Igovernment’slock
The government’s clash with operators highlights broader conflicts around financial policies vis-a-vis essential items. However, governments are trying to raise revenue collection via Raza’s taxes. Asim Raza’s objection points to resistance among key sectors critical for national food security across Pakistan.
Prospects Ahead And Efforts To Find A Solution
While talks between different parties continue. Both sides cannot predict the immediate future concerning traders. Strike action against deducting fees before grinding the corn flour into mealie-meal (flour). The outcome of these negotiations might extend work stoppages or quickly restore operations. If the charge is waived during the processing period.
